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What are floating rate notes? Explain the various types of FRNS FRNs are bonds that do not carry a fixed rate of interest. The various forms of FRNs are : Perpectual FRN Minmax FRNs Drop lock FRNs Hybrid fixed rate reverse FRNs Flip flop FRNs Mismatch FRN
Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
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Q. What is the domino effect or contagion? Answer: The definition is the defencelessness of even seemingly healthy economies to crisis of confidence generated by events
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Q. Present and explain the Fundamental Equation of the Monetary Approach. Answer: Suppose E$/E = PUS/PE and that domestic price levels depend on domestic money demand
Q. Explain Critical Appraisal of Chamberlins theory? a. Chamberlin assumed that monopolist competitors act independently and their price manicuring goes unnoticed by the rival
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discuss the possibility of trade if factor endowment are identical and tasde is different
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